For franchisees looking to enter the restaurant landscape, starting from scratch isn’t always the only (or best) option. Legacy brands like Melting Pot, the 94-unit fondue franchise, may have resale opportunities. By purchasing an existing location, new franchisees gain a strategic upper hand, going into business for themselves with a nearly nonexistent runway to launch and, often, a strong existing team and customer base. 

“The buying process requires the same due diligence that should be completed when buying a new franchise,” said Collin Benyo, Franchise Growth Strategist. “But once you make the decision, the site selection process is cut out, saving you nine months compared to the traditional development schedule. The buy-in is lower than you might expect to join a 50-year legacy brand, making this a unique opportunity to become part of something established and proven.”

By investing in an established location, franchisees are also able to leverage existing local marketing power, pre-established supplier relationships and well-honed operational systems to make the transition even smoother.

With these factors, the opportunity presents clear advantages, but it’s still important that candidates have a thorough understanding of exactly what the investment represents.

Completing Proper Due Diligence on a Resale Franchise Opportunity

“Why is this location being sold?” is a key question for candidates exploring resale opportunities. While this can create some hesitancy, it’s best to just ask.

“One of the biggest reasons we have resale opportunities is because we have franchisees who are finishing their chapter,” Benyo said. “They’ve been with Melting Pot for 30-plus years. They’ve had a great run. And they’re ready to retire, but they want to pass the torch.”

Resale opportunities aren’t always tied to weak performance or a frustrated owner. Often, the location is being sold because a longtime franchisee is ready to step away after decades in the business. They’ve built something they’re proud of, and they want the next owner to carry it forward and keep it growing.

“There are some resale opportunities with locations that we made the strategic decision to close, but when we bring them back to the market as a resale, it’s because we’re confident that now’s the time,” Benyo said. 

The Destiny USA mall location is a prime example of this. Benyo explained that this specific location previously closed for reasons beyond Melting Pot’s control, but with the right franchisees, there was a prime opportunity to reinvigorate it.

“Melting Pot was primed to come back in,” Benyo said. “It was a great space; we just needed the right franchisees. Now, we have a great group of energetic, talented operators who saw this investment as an easy win. They took advantage of the opportunity, and they’ve already seen great success.”

“Each resale location has its own story, and it’s part of the due diligence process to read into that and learn more about the history,” he added.

Elevated Tools and Data-Driven Site Selection Further Validate Resale Opportunities

In the past, there have been markets that simply weren’t ready for a Melting Pot. Resale opportunities with this backstory are now returning to the market — this time backed by real data and strong confidence from the corporate team.

“Birmingham, Alabama, is a great example of how we address evolving markets. We now work with SiteZeus, and we can see who is supplying the right recency, frequency and spend,” Benyo said. “In the 10 years since that location has been operational, the market segmentation has drifted south toward that location. The building’s ownership has spent money on revitalizing the space, and there is a lot of traffic in the area. When we looked at the opportunity to reinstate, a lot has changed. We see this as an opportunity for a franchisee in our community to come in and be very successful.”

While the communities that house these kinds of resale opportunities are often anxiously awaiting the return of their beloved Melting Pot, strong community sentiment alone isn’t always enough to seal the deal. With advanced analysis and an incredibly clear view of who their target customer base is, the Melting Pot development team can provide another layer of validation for candidates considering reviving a previous location.

The “New Entity Effect”

For those considering a resale, Benyo emphasizes that it’s important to strike a balance between the existing presence and any changes that may come with revitalization and new ownership.

Stepping into an existing location certainly has its efficiencies, but the Melting Pot team is not under the impression that new owners will step in and “just continue driving the car down the road.”

“Even if they’re buying a well-established location from a legacy owner, all of our franchisees go through the same approval process, and they understand that this is not a ‘set-it-and-forget-it’ kind of business,” Benyo said. “You’re still getting the same support a new location would get with marketing and even any necessary design and construction.” 

“There is a large cost difference between resales and what a typical build-out would be, but we may still need to modernize the existing location,” he continued. “It’s far too easy to unlock the doors and turn the lights on, but teams who make a really big splash and create a new look and feel are recognized and celebrated by their communities. They have great openings and strong continued sales.”

Across the Melting Pot system, the most successful franchisees are the ones who are aware of what’s going on in their restaurants and communities. Consistent engagement and a steady commitment to the in-restaurant experience, whether it’s a brand new location, a reopened one or an existing one that simply transferred ownership, is what drives Melting Pot's success.

A Melting Pot resale offers a faster way into ownership with a legacy brand that already has awareness in the market. With a shorter timeline and lower upfront lift than a new build, franchisees can put their focus on running the operation, following the system and growing the location’s performance.

To find out more information on costs to buy this franchise, please visit https://1851franchise.com/meltingpot.